Airline bankruptcies are a tale as old as time. Southwest has lost a historical cost advantage it once enjoyed, as its labor costs per seat have risen by 32% while competitors have used bankruptcy to beat expenses down. Today, southwest’s labor costs exceed its competition by 10-20%. Unless they can collectively find a way to get passengers to pay more, labor is looking at a haircut, by cooperation or force. We discussed this and more on Tuesday’s Power & Money with David Asman.
Tag Archives: Monica Mehta Seventh Capital
Who doesn’t love free shipping? But could marketing promotions like this be doing more harm than good to over extended consumers? Finance expert Monica Mehta and personal development coach Larry Winget return to Fox Business Bulls & Bears to discuss L.L.Bean’s decision to offer free shipping on all purchases and the impact to your wallet.